+$1,142.72 on 4 stocks with 75% Accuracy
On the surface it sounds like today was a great day. In reality, I wasn’t very happy with my trading. I took 4 trades and hit 75% accuracy, but none of my winning trades worked out the way I was anticipating. I traded two momentum names right out of the gates, $GLBS and $MPET. Both of these stocks ended up being big fake outs. I got in both with big size (6k-10k shares), and had unrealized profits in excess of $3k. Unfortunately, I wasn’t able to realize those profits when it came time to hit the sell button. On both trades I stopped out with profit, but with only a fraction of what I felt the potential was. This is one of those days I’m glad to walk away green, but I’m disappointed we didn’t see better follow through on these breakouts.
Switching Gears and Trading Reversals
I decided to switch gears and trade 2 reversal setups after my first two momentum trades failed. I traded $EQT and $THC for a bottom bounce and a top reversal, respectively. Once again, neither of these trades worked out the way I was expecting. I was very disapointed in the lack of follow through on both setups. The trade on $THC was espeically frustrating because I took my short position, it popped up and stopped me out, then within 1 min would have been a $900 winner. How irritating. This is the luck of the draw. I had to follow my rules and stop out, so it was the right decision.
The good news about today is that I don’t have any regrets about the way I traded these stocks. I took all of them with good intentions, well placed stops, and was able to realize at least a small profit on 3/4. I am concerned with the lack of follow through and I will be more cautious tomorrow when I’m trading momentum. I may focus more on Reversals since those setups seemed to have a bit more potential today. The only regret I have today is underestimating $AKAO, but even in hindsight, the high level of pre-market volume was a warning for a possible choppy setup. Once it showed momentum out of the gates, I could have been quicker to try to get a piece of the action.